NFTs hold their value for numerous reasons related to social media status, bonus content, community access, free merchandise, exclusive prizes and more
First and foremost, it’s vital to understand that non-fungible tokens (NFTs) are much more than digital art and JPEG images. Rather, thanks to the tokens tracking ownership, the value of these digital assets boils down to supporting creatives, offering bonus content, social media status, access to solid communities, free limited-edition merchandise and more.
Another plus side is that NFTs provide genuine exclusivity. Look at Director Kevin Smith’s NFT collection, for instance. His horror movie “Killroy was Here” was only seen by 5,555 collectors of 5,555 special-edition NFTs that provide access to the film—making the collectibles desirable. People want personal experiences. This digital art can guarantee that.
There’s much more to NFTs than what initially meets the eye.
So, here’s all about why some NFTs hold their value more than others.
Reasons Behind High-Value NFTs
Similarly to bonds, stocks and physical artworks, NFTs have become a prime place for investors parking their money in the hope that they can sell it on for more.
Look at CryptoPunks, for instance. Initially, Yuga Labs gave out these pixelated PFP NFTs for free. Now, you can find these Punks selling on secondary marketplaces everywhere—with many CryptoPunks costings six figures and the most expensive being acquired for $23.7 million.
The curators of CryptoPunks, Yuga Labs, are OGs in the Web3 sphere following the success of the punk collectibles. Consequently, Yuga Labs’ other NFT projects, Bored Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, Meebits, and Otherdeed for Otherside, remain successful investments.
Another prime example of the curator behind the project holding importance includes Rick and Morty’s director creating a new NFT project dubbed Art Gobblers. Despite the NFTs initially being given away for free, the NFTs have generated more than $14 million in secondary sales—sparking debate regarding unfair distribution practices—but making them fantastic investment vehicles.
Other high-value NFTs are:
You can find characters from the art representing these NFT projects here, there, and everywhere. Profile picture (PFP) NFTs like CryptoPunks boost status on social media channels. Thus, opens up possibilities in the Web3 world. The digital assets can increase access to investment opportunities and personal relationships with influential people.
The network the NFTs mint on also plays a role in success. For instance, most OG NFTs mentioned above are held on the Ethereum blockchain. However, Solana and Cardano NFTs are gaining popularity following cheap gas prices and holding trending collections.
Another key reason for NFT popularity depends on where the proceeds go. Many NFT projects donate the proceeds to chosen charities or use it toward jump starting fundraising initiatives.
The success behind NFTs also depends on how rare they are. Generally speaking, the rarer the NFT (the fewer digital assets that exist), the more desirable (and expensive) they are.
Be sure to check out this ultimate guide to NFT rarity tools, to check the rarity of your NFTs. The websites are beneficial for making better investment choices.
How to Steer Clear of Unvaluable NFTs
Now we know about valuable NFTs and how it depends on what they represent, who created them, who is buying them, what the collectibles stand for, etc.—it’s time to dig into which digital assets to steer clear of.
When influential NFT curators achieve goals, it’s only normal for others to want to do the same things. It’s a social game. And boy, everyone wants a piece of the cake.
This is where trouble arises. To value an NFT simply because it’s similar to one seen on OpenSea trading for thousands—perhaps even millions—completely misunderstands the need for these digital assets.
The popularity comes from the execution behind the team; the history behind the collectibles; leveraging opportunities; cryptocurrencies value, and more.
One of the most famous invaluable NFT projects is Art Wars. The 1,138 NFTS were de-listed from OpenSea after receiving complaints regarding permission to create the artwork.
The artwork of its Stormtrooper helmets looked legit – like it exists in the real world. However, it was just another meme image not worth the $10k (2.9 ETH) it was selling for at the time of sale.
Other NFT projects that have kicked up a fuss include:
- Evolved Ape
- Solana Towers
- Interstellar Bots
- Cheesy Dizzy
- And more
The reasons behind the NFTs includes stealing investors’ money and vanishing out of nowhere.
Other examples of destructive NFT projects are ones that promise giveaways they don’t follow up with, copyright artwork or creative content, and collectibles representing a person’s death despite not giving proceeds to family members—like Floydie NFTs and the recent Bowie collection, for example.
There are many questionable collections out there. So, just be aware!
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